The innovations in digital technology and smart connections that have led to what is commonly known as Industry 4.0 — or the fourth industrial revolution — hold tremendous potential for the medical technology (medtech) industry. Digitization can help medtech companies improve their operational and financial performance through both internal and customer-facing applications. Yet most companies in the industry are still in the early stages of incorporating these digital technologies into their core business operations. In the third quarter of 2016, we analyzed a sample of 20 medtech companies to gauge their Industry 4.0 maturity and digital readiness across three dimensions: (1) digitization of products and services; (2) business model (digitization of market and customer access); and (3) operating model (digitization of value chains and processes).
The results give a snapshot of digitization in medtech thus far, and highlight priority areas that companies need to focus on.
Key findings for specific segments include the following:
Because digital technology advances very quickly, medtech companies need to begin investing in digital capabilities now. Those that do will be able to differentiate themselves and gain a first-mover edge over the competition.
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